When you take cash from your client and hold the cash for your client to spend on expenses for which your client reimburses you for, that cash is a liability. It's not income.

When you spend on costs for which your client should reimburse you, that money your client owes you in an asset. It's not an expense.

So the real question is how do we record the above in Quickbooks online so that it doesn't show as income or expense on your reports. 

Can someone please tell us?